Factors of stock market red tape – Tejaratnews
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According to Tejarat News, after 26 days of upward rally in the capital market, the suppliers were active in the market yesterday. At first, small and medium-sized market symbols and then index-making stocks were targeted by sellers. Many buying queues were offered, and the bank group also joined the selling queue, so that this industry took the title of the most supplied group in the market.
Simultaneously with the withdrawal of buyers, the inflow of real liquidity gave way to the outflow of money. This process only lasted for one day and today 650 billion was entered into the stock market by real people. The result of the trading flow of the last two weeks was the entry of 4 thousand 700 billion tomans into the market, of which 1 thousand 300 billion were withdrawn from the market during Tuesday’s transactions.
As market indices and stock prices approached the resistance ranges, we witnessed the market’s reaction to these ranges and intensified supply.
Technical experts of the capital market have evaluated the range of two million and 240 thousand units as a short-term resistance point for the market. They believe that divergence has formed in some groups and symbols such as Shasta, and it is necessary to correct them at some point.
Portfolio modification opportunity for shareholders
First of all, it should be noted that after the upward rally in the financial markets, some investors take profit. This factor will cause a wave of supply in the market. This sale and recognition of profit can be done by individuals, legal entities and even actors of stocks and industries.
Also, the end of the week fueled the negative fluctuations of the market. The fear and concern of the market from sudden decisions and weekend holidays, which we see many examples of recently, is clearly present in the market body.
However, according to technical experts, these negatives can be a pullback to the broken ceilings of the market in the range of two million and 200 thousand. Therefore, we can use the short-term rest of the stock market instead of the word correction.
Therefore, the negatives of the stock market have provided good conditions for entering the remaining stock exchanges or modifying the portfolio.
The increase in rates did not please investors
After the announcement of a 40% price increase in car factory prices, over the past two days, supplies in this group intensified and gradually affected other parts of the market as well. It should also not be forgotten that usually the impact of news in the market is anticipated.
On the other hand, the increase in car prices was met with many criticisms. According to some experts, the amount of these increases has not met the expectations of the market. But some analysts have a different opinion and believe that this rate increase is better than nothing! In addition to this, it should be noted that the price increase of cars has been determined by the audited financial statements of 1400, so there is a capacity for future price increases.
However, the delay in announcing the new prices caused a situation where the price of the car in the open market faced sharp growth. It is clear that if the rate hike was announced on time, it would have been possible to reduce the inflammation of the car market. In a situation where the price of the dollar has reached a relative calm, this increase in rates is only related to the lack of that commodity.
Therefore, the speech of the CEO of one of the country’s two car manufacturing giants in the media that the increase in rates is a prelude to the increase in production is not correct. Because if this increase in rates does not increase soon, not only the increase in production will not happen, but it will also add to the accumulated losses and problems of car manufacturers.
Despite the announcement of new prices and a 40% increase in car prices, there is still a big gap between the market price and the factory price. Therefore, this solution is not effective in reducing inflation, and we will again see a lottery and more demand than supply.
The best solution is to bring the prices closer to the free market. In this situation, speculative demand will experience a sharp decrease. On the other hand, this solution will increase the quality of the products, direct the liquidity towards production, and the final consumer will get the desired product more easily and at a lower price than the current market.
At the same time as the inflation decreases with the profitability of car manufacturers, the government’s budget deficit has a chance to decrease through taxation. All this is if the government stops insisting on the distribution of rent.
Read more reports on the stock news page.